Chapter 7 Flashcards
Model used to identify internal / external factor for growth of business
Timmons
What it takes for a successful entrepreneurial process
opportunity
entrepreneur
team
balanced and integrated approach to challenges
Three main parts of Timmons model
Opportunity
Resources
Team
Opportunity
the entrepreneur should identify and solidify viable market opportunity
The two major roles of a team
Removing the ambiguity and uncertainty of the opportunity
Providing leadership to manage available resources in effective manner
Ansoff Matrix Growth Strategies
strategic planning tool that provides a framework for future growth
Four generic growth strategies of the Ansoff Matrix
Market penetration
Market development
Product development
Diversification
Market penetration strategy
products that are existent in an existing market. In this strategy, there can be further exploitation of the products without necessarily changing the product or the outlook of the product.
Market development strategy
the business sells its existing products to new markets. This can be made possible through further market segmentation to aid in identifying a new clientele base.
Various approaches to Market development strategy
- New markets
- New distribution channels
- New product packaging
- Different pricing policies
Product dev strategy
a new product is introduced into existing markets. Product development can be from the introduction of a new product in an existing market or it can involve the modification of an existing product
Two unknowns in Diversification
New products hide development problems from the organization
New market has unknown characteristics
Issues when trying to grow
Growing too fast
Infrastructure need
Expansion Capital
Personnel issues
Disagreements
